This Time, the Giant Opposition Pushes for 'Geumtuse'... Government and Ruling Party Oppose

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Although the government has expressed its intention to postpone the introduction of the Financial Investment Income Tax (Fin-Income Tax), which was scheduled to be implemented next year, by two years, the opposition party announced on the 8th that it intends to push ahead with it. Even ruling party lawmakers have opposed the introduction of the Fin-Income Tax.

Kim Seong-hwan, the Policy Committee Chair of the Democratic Party of Korea, held a press conference at the National Assembly on the same day and stated, "The Fin-Income Tax was an agreement between the ruling and opposition parties two years ago," emphasizing that it should be implemented as planned.

Chairman Kim said, "Taxes should be imposed where there is income," adding, "Income is concentrated among the ultra-high-income earners in our society, and this is the right time to correct the lack of taxation."

The Fin-Income Tax imposes a 20% tax on profits exceeding 50 million KRW annually from investments in financial products such as stocks. Although the enforcement date is January next year, the Yoon Seok-yeol administration has submitted a tax law amendment bill to the National Assembly that includes a two-year postponement.

However, as the Democratic Party, the majority party, has rejected the postponement, the likelihood of implementation in January next year as scheduled has increased.

Lawmakers from the ruling party have expressed their opposition. Kwon Seong-dong, a member of the People Power Party, said, "The Democratic Party insists that the Fin-Income Tax is a tax on the top 1%, but if major players in the stock market evade taxes and move elsewhere, a stock price crash is inevitable," expressing concern that "ultimately, the damage will be borne by retail investors, who make up the majority of the 14 million stock investors."

He criticized, "When the ruling and opposition parties agreed on the Fin-Income Tax in 2020, the stock market was booming, but recently, due to the global economic crisis, our stock market has fallen more than 30% from its peak, entering a recession," and added, "Insisting on the Fin-Income Tax at this point is a declaration to bring about an economic crisis," urging discussions on 'abolishing the Fin-Income Tax.'

Jo Kyung-tae, also a member of the People Power Party, conveyed investors' concerns during questioning of Kim Ju-hyun, the Financial Services Commission Chair, at the Budget and Accounts Special Committee the day before, saying, "More than 13 million people are investing in stocks, and they are worried that the introduction of the Fin-Income Tax will cause the stock market to crash," and added, "Therefore, the government should actively proceed with postponing the Fin-Income Tax until the market stabilizes."

He stated, "I believe the Fin-Income Tax should be postponed, and furthermore, I advocate for its abolition," and requested, "I ask the government to actively engage in persuading the National Assembly."

This content was produced with the assistance of AI translation services.